MOSCOW, Nov. 18 (UPI) -- Russian gas monopoly Gazprom entered into talks with Ukrainian energy company Naftogaz on the possibility of a joint venture, a Gazprom official said.
Gazprom cut natural gas supplies to Ukraine most recently in 2009 because of contract and debt disputes. The global recession left the Ukrainian economy in shambles and international lenders are calling on Kiev to enact energy reforms as part of a bailout.
Alexei Miller, the top executive at Gazprom, said during talks with Ukrainian Energy Minister Yury Boiko that talks on a possible merger were taking shape.
"At the meeting, different aspects of creating a joint venture between Gazprom and Naftogaz of Ukraine were discussed," the gas monopoly said in a statement. "The parties have agreed to start valuation of assets that could be contributed to the joint venture."
The issue was first raised in April when Kiev was pushing for a better gas deal with Russia.
Miller said during August meetings with Ukrainian leaders that a merger was the best way for Ukrainian consumers to get a cheaper and more reliable source of natural gas.
Around 80 percent of all Russian gas passes through Ukraine first before reaching European consumers.
Opposition leaders in Kiev said developments in the natural gas sector are a sign the Ukrainian leadership is moving closer to former patrons in the Kremlin.
